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Auditmos Oak Security
Auditmos Oak Security
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Last updated: Aug 16, 2023
Loop Finance is a decentralized finance and cryptocurrency project offering its users an Incentivized Community Publishing Platform, Decentralized exchange, NFT Marketplace, Educational Courses, Liquidity Bootstrapping Pools, Venture Capital, and a mobile app.
The Community Publishing platform offered by Loop Finance represents a tokenized publishing platform that rewards its content creators with LOOPR tokens. The main focus is cryptocurrency-related topics and protocol reviews. The platform acts as a marketing tool through which users can learn about new blockchain projects, and later on swap these projects’ tokens in the Loop DEX.
The Loop DEX is promoted by the team as the first AMM in the Terra ecosystem, it provides for token swaps, liquidity provision, farming, staking, and claiming monthly airdrops. 25% of the fees accrued from the DEX swap feature are delegated to buying LOOP tokens from the DEX itself, which get distributed to stakers later on.
Loop Learn is an educational platform available through the project’s app, whose main focus is to provide simplified videos on DeFi in order to facilitate the onboarding of new users. The platform aims to solve problems related to cryptocurrency education such as complex terminology, lack of organized learning paths, and unattractive learning incentives. The videos available, include practical tutorials for new users of both Terra Network and Loop Finance, through a simple, animated, approach.
The Loop Ventures program provides new projects with access to guidance and resources in order to support their launch and development. The companies listed in the incentive need to address gaps in demand with unique real-world applicable solutions.
The NFT marketplace which is still a work in progress, with an alpha state currently available on the testnet, will focus mainly on utility NFTs. The marketplace offers an NFT Bond product, which enables NFTs yield generating abilities for NFT stakers. 50% of all NFT and launchpad sales are used to buy LOOP from the company’s DEX in order to distribute them to stakers.
The Loop Finance mobile app allows the users of the company’s services to access them from their mobile devices. Another functionality of the app is using it as a payment method for local business or deliveries through Loop’s partnership with Doordash.
Liquidity Bootstrapping Pools are useful for newly launched projects, by allowing them to generate liquidity with a relatively small initial capital. These pools only exist for a predetermined duration of time related to the Initial DEX Offering (IDO) of the token. The mechanics behind these pools provide for having variable weights in them, in which the ratio of the two assets keeps changing in order to avoid volatility in the asset’s price. Once the IDO ends, the pools are converted into normal liquidity pools with updated prices and ratios.
In order to connect to the Loop Finance app, the user needs to connect a wallet Loop Finance supports by creating it through Terra Station or using an already existing one, such as Loop Wallet which is integrated into the company’s app.
The Loop Community has a news feed page, through which users can learn about the latest projects being advertised on the platform, as well as read the latest trending articles on blockchain-related topics. There are categories to provide for filtering for the appropriate content, and a leaderboard to incentivize more content creation and interactions between users. Loop Finance also provides in-depth tutorials on article creation to maximize the quality content on the platform.
In order to farm through the company’s DEX, users need to navigate to the farm page, review the available farms, choose their preferred pool and join it by staking the required LP tokens. Liquidity may be withdrawn at any time, however, if LP tokens are unstaked before a 14-day minimum period of time has passed, the compounded rewards are subtracted from the claimed amount.
All Loop Finance fees are subject to governance voting and may change.
The LOOP token is used for governance of the platform and can be staked on the built-in DEX. 25% of all trading fees on the DEX are distributed to stakers. The digital asset can also be deposited in various liquidity pools. The company allocates 75% of the trading fees on the platform for distribution to liquidity providers.
The maximum supply of LOOP is 1B tokens, out of which 25% are left for liquidity mining rewards, 25% are kept as a community fund, 20% will be used for partnerships, 15% are given to the core team, and the remaining 15% are for token sales. The emission of the token is 29% each of the first two years of the existence of the project, 22% for the third, and 10% for each of the fourth and fifth year.
LOOPR is the Loop community rewards token, used specifically in the educational and publishing platform of the project, to incentivize the contribution of the community. The future plans for the token include allowing swaps between it and LOOP on the project’s DEX, as well as staking it to earn more LOOP tokens.
The Loop Finance team is led by co-founders Thomas Norwood and Simon Rahme. Thomas Norwood has been an entrepreneur for over 20 years with experience in digital marketing, web, and software development. Besides co-founding Loop Finance, he also founded Trybe – a tokenized publishing platform and social network. Simon Rahme is an app developer with more than ten years of experience, his other venture is Legacy App, which is an app development service provider with clients like Nickelodeon, LinkedIn, the Australian Government, and others.
Loop Finance audits can be found in the protocol dashboard on this webpage.
The company partners with many projects from the Terra ecosystem, including Angel Protocol, Pylon Protocol, Akash Network, Loterra, Spar, Neptune, Apollo, and Kujima.
However, the most interesting collaboration is the partnership with Doordash, which enables the Loop Finance mobile app to be used as means of payment outside the crypto niche.
Since the company offers help in the incubation of new projects with their seed funding rounds within its own Loop ecosystem and also provides assistance in raising liquidity, it is always on the lookout for new projects which “have a positive impact and provide utility”.
For Q1 of 2022, the company plans to launch LP bonds, Loop LP NFTs and utility NFTs, NFT staking, NFT Quests, a v2 UI for the DEX, iOS and Android Wallet Apps coming out of Beta, as well as launch “new exclusive projects powered by Loop”, list on “selected top tier” CEXes, partner with projects on the Ethereum blockchain, and allow LOOP and LOOPR holders to receive airdrops from Loop Ventures’ partner projects.
During Q2 of 2022, the team plans to launch Loop Chrome Extension, add more functionality and integrations to the app, scale-up Loop Learn partnerships and content, work with cross-chain Launchpads to bring more projects and assets to the Terra ecosystem, launch more exclusive projects powered by Loop, launch easy one-click DeFi products, and list on more top tier CEXes.
Q3 of 2022 is as far as the current roadmap spreads and includes putting efforts to make Loop App and Chrome Extension the number one wallet on Terra, expand Loop product range to other chains, become a gateway to crypto from the mass market, and reach 10m active daily users with a $1B TVL.
https://docs.loop.markets/loop-finance/
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Last updated: Aug 16, 2023
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